Three Trump Stocks That Still Have Room To Run

Whatever the bull market's fate, David Bechtel, principal at Barrow Street Advisors ($178 million in assets), urges a return to quality. Since its 2009 inception, Bechtel's Barrow Value Opportunity Fund has returned 15% annually, beating the S&P 500. Three of his top picks:

Raytheon: The defense and cybersecurity giant, with over $24 billion in annual sales, is at the heart of President Trump's military-and-border agenda. “The U.S. military can’t function without Raytheon,” says Bechtel, who doesn’t fret the stock’s 24% run in the past year. Another benefit? The Massachusetts-based company is a heavy exporter of defense equipment, potentially making resilient to any looming border adjustment tax.

United Rentals: The world's largest equipment-rental company commands 11% of the North American market. Bechtel says it'll likely benefit from pricier oil and increased home building and industrial activity. In recent years, United Rentals has also been a savvy industry consolidator, buying RSC in 2012 and NES Rentals in 2017.

Brown-Forman: The owner of Jack Daniel's whiskey and other spirits such as Herradura tequila has an under-leveraged balance sheet and is further expanding into premium tipples. Recently, Brown-Forman's acquired scotch brands and it has successfully grown up market brand, Woodford Reserve. Though craft brands are on the rise, Bechtel says linchpin brand Jack Daniels still benefits from big scale advantages. "People will wake up to this stock," he says, citing B&F's 8.5% cash flow yield to enterprise value.

I’m a staff writer at Forbes, where I cover finance and investing. My beat includes hedge funds, private equity, fintech, mutual funds, M&A and banks. I’m a graduate of Middlebury College and the Columbia University Graduate School of Journalism, and I’ve worked at TheSt...